NIAS Area Studies
PAKISTAN READER
Photo : Eurogroup President Paschal Donohoe in a press conference after the Eurozone finance ministers' meet
By Lekshmi MK
BULGARIA
Government announces a plan to adopt the Euro by 2026
On 19 June, Eurozone Finance Ministers recommended that Bulgaria should become the 21st member of the Eurozone from January 2026. One of the members said that the Eurogroup approves that Bulgaria should fulfil all necessary conditions to adopt the Euro currency. The recommendation would have been formally adopted by all 27 EU finance ministers and then by EU leaders on 26 June. The exchange rate would be decided by EU Finance Ministers at their meeting in July. This would provide Bulgaria six months to prepare the technical transition for the start of the year. Bulgaria had to prove that it meets the eligible criteria of inflation rate by a stable exchange rate within a 15 per cent margin on either side of the central parity rate in the Exchange Rate Mechanism II. (Jan Strupczewski, “Euro zone finance ministers recommend Bulgaria adopt euro in 2026,” Reuters, 19 June 2025)
FRANCE
President Macron announces plan to resolve the Iran-Israel conflict
On 19 June, France24, reported that France’s President Emmanuel Macron is taking various initiatives to end the Iran-Israel conflict. This initiative was taken with the EU to end the ongoing war by demanding a negotiated solution. The plan was to negotiate with Germany and Britain to reduce civilian casualties in the conflict. Macron urged this negotiation as it would be necessary to protect their regional security by ending the military conflict between them. He even urged its foreign ministry to help French people in Israel if they wish to leave the country. (“Macron launches 'initiative' with EU partners to end Iran-Israel conflict,” France24, 2025)
ITALY
Economy minister criticises the defence rules imposed by the EU
On 19 June, Reuters reported that Italy’s Minister of Economy and Finance, Giancarlo Giorgetti, stated that the EU budget rules are stupid and senseless, and they need to be changed to allow member states to boost defence spending. The EU Commission had introduced flexibility clauses in order to allow more investment in security. These clauses disadvantage countries like Italy, as it came under EU infringement procedure for excessive deficits. Italy was pressured to lower the deficit but hike defence spending. The plan aimed to boost military spending to deter a potential attack from Russia and become less dependent on the US. (Giuseppe Fonte and Angelo Amante, “Italy, pressed to boost defence spending, lashes at 'stupid' EU rules,” Reuters, 19 June 2025)
RUSSIA
President Putin meets Indonesian President Subianto in St Petersburg
On 19 June, Russia’s President, Vladimir Putin, held a meeting with Indonesia’s President, Prabowo Subianto and signed a declaration on a strategic partnership. The agreement looks at Russia's aim to deepen its relations with the Global South. On the same day, Sovereign Wealth Fund Danantra, an investment management agency of Indonesia and the Russian Direct Investment Fund signed an agreement to create an investment fund worth EUR two billion. The agreement was signed by both CEOs, and it was witnessed by both the Presidents of Indonesia and Russia. The talks took place at St. Petersburg, the northern city of Russia. Russia proposed deepening ties with Indonesia, which has the world's fourth-largest population. (“Putin hosts Indonesia's Prabowo in Russia in bid to deepen ties,” Reuters, 19 June 2025)
SPAIN
Prime Minister Sanchez rejects NATO’s five per cent GDP spending goal
On 19 June, Euronews reported that Spain rejected NATO's proposal to spend five per cent of GDP on defence. Spain’s Prime Minister, Pedro Sánchez, said that their country couldn't commit to a specific spending target in terms of GDP. He even said that it was unreasonable but also counterproductive, as it would move Spain’s optimal spending and curb the EU’s efforts to strengthen its security and defence ecosystem. Any agreement would only become a provision if all 32 NATO member states. Sanchez’s decision to derail would risk the upcoming summit on 24 June, for which the US President Donald Trump would attend. (Gavin Blackburn, “Spain’s PM Pedro Sánchez rejects NATO's 5% of GDP spending plan as 'unreasonable',” Euronews, 19 June 2025)
REGIONAL
European Parliament condemns Hungarian law over the LGBTQ+ ban
On 18 June, Members of the European Parliament (MEPs) condemned Hungary’s likely ban on an upcoming Pride event in the capital, Budapest. It even called on the EU executive branch to intervene. A cross-party delegation decided to travel to Budapest to express solidarity with the event. A centre-left Spanish lawmaker told to Hungary LGBTQ+ community that they were not alone. A European Commission member said that the commission was founded on principles of equality and freedom; hence, everyone should be able to live freely and love whoever they choose. The EU and the European Commission were ready to use all their tools to ensure that EU law was upheld across the EU. (Budapest Pride ban threat sets up EU-Hungary showdown,” Deutsche Welle, 19 June 2025)
Switzerland and Norway's agreement on CO2 storage
On 18 June, Swissinfo reported on Switzerland and Norway signing an agreement called CO2 storage. The agreement would store CO2 under the North Sea in future and even mark another step to strengthen bilateral relations between Switzerland and Norway. The project aims to find out how carbon dioxide removal (CDR) and cross-border CO2 storage (CCS) can be integrated into international climate policy. The CDR would remove CO2 from the atmosphere, and CCS would capture the CO2 gas from the atmosphere and liquify it to store it underground. There are no storage facilities in Switzerland; hence, Germany, Norway and Denmark planned to prepare them. (“Switzerland and Norway sign CO2 storage deal,” Swissinfo, 18 June 2025)
EU’s Equal Treatment bill is not to be enforced with no support from EU member states
On 18 June, the EU Equal Treatment Directive was set to be discussed in the EU Parliament. This bill, aims at protecting the people against discrimination on religion, age, and sexual orientation, but it has come to a dead end as it did not get full approval from the EU member states. It was removed from the EU work program for 2025. The Commission planned to withdraw within six months. This bill would benefit approximately 75 per cent of EU citizens along with protecting their values and sentiments. The implementation costs are assessed as within acceptable limits. The EU would shift focus onto non-legislative measures, women's rights, LGBTQ+ rights and anti-racism rights. This step was criticised by civil organisations because they are road maps, not laws, hence they lack implementation. (Paula Soler, “Exclusive: After 17 years, EU anti-discrimination bill hits a dead end,” Euronews, 19 June 2025)
INTERNATIONAL
Meeting held between the UK, Iran and European leaders on Iran’s nuclear programme
On 19 June, UK Foreign Minister David Lammy met Iran and European Foreign Ministers to discuss nuclear talks in Switzerland. Israel and Iran were in constant missile strikes for the past week. In the meeting in Switzerland, Lammy said that they were determined that Iran should not possess nuclear weapons and would have diplomatic negotiations with Iran to do so. Israel wants to eliminate Tehran's ability to develop nuclear weapons whereas Iran denies that their nuclear programme was for military purposes. White House said that US President Donald Trump would make a decision to join Israel's side within two weeks. (“UK's Lammy to meet European counterparts in Geneva to hold nuclear talks with Iran,” Reuters, 19 June 2025)
42,000 sign petition against buying US fighter jets in Switzerland
On 18 June, a petition that was passed in the Swiss government to stop the purchase of US fighter jets reached 42,000 signatures. The petition was made because the petitioners called Stop F-35 alliance didn't want the Swiss government to purchase military equipment from countries that were involved in conflicts and that it should maintain its neutrality. This also included another reason of expense that it cost billions and purchasing it could lead to involvement in wars. This petition involved F-35 fighter jets. The alliance said that it is not too late to make the right decision. This aimed to replace the fighter jet fleet of F/A-18 Hornets and F-5 Tigers.(“Swiss petition against US F-35 fighter jets gathers 42,000 signatures,” Swissinfo, 18 June, 2025)